Archive for the ‘Labour's cuts’ Category
What has happened to South Tyneside Council?
Doing things we’ve yearned over for years!
I don’t know what’s going on, South Tyneside’s Labour Party must have had an injection of pragmatism, or they are riding on the crest of a popular wave, or something like that.
Councillors are to be threatened with legal non niceties and even fines for failing to declare pecuniary interests, there has been a reinforcing of older rules about seeking favours or influencing decisions, respect is the flavour of the month, and to really upset any opposition they’ve managed to underspend the budget and put money away for a rainy day!
My head is in a spin, I don’t quite know what to make of it, let’s just hope that they keep it up and manage to keep council taxes at the current level leaving us with some money to spend as consumers trying to reinvigorate our local economy. After all a low taxed borough must surely have a chance of winning over investors and job creators.
However, the biggest shock is this – council and committee meetings taking place on an evening when it is easier for members of the public to attend – this is an outrage! How dare they do what we’ve been wanting for years!
Before you know it they’ll be opening a Facebook page so we can “like” them, or even worse they’ll install a webcam in the council chamber of South Shields Town Hall so we can watch them in action.
This flourishing of populist policy will have to stop I tell you, after all we need something to complain about.
It’s party time!
What is beneath the gloss?
So now that the Diamond Jubilee parties are over and we bask a little longer in the glow, the next party is upon us from tomorrow in the shape of a footballing feast known as the European Championships in Poland and Ukraine. Another few weeks of supermarket prodding will have us overfilled with lager, beer, and frozen pizzas, our homes and cars will be draped with the flag of St. George, the “red tops” will exhort the England football team to glories well beyond their reach (they have only ONCE reached the semi final of this tournament), the new flatscreen TVs will be overheating, and when it all ends……….well there are the Olympics and Paralympics to look forward to in London, along with commercially sponsored torch bearers. One only hopes that South Tyneside Council is NOT tempted to mount the giant screen in the park again, I fear the demand will not be there to sit and watch in a South Shields park!
Of course our politicians will probably be a little more sanguine than myself, especially having invested so heavily in the London Olympics, and I confess most of the Olympian sports hold little interest for me even though there will be some football in Newcastle, but for others this will indeed be a veritable feast of summer sports with Wimbledon and Test Match cricket thrown into the mix. David Cameron and News International will be hoping to share the glory of English and British sportsmen and women as the medal count increases the “feel good” factor and the national index of good cheer. Parliament will be enjoying its long summer break with only the Leveson inquiry interrupting the good news, yet quietly gurgling away beneath the veneer of good cheer and “gloss” will be ……………………the economy.
Let’s not forget, that this is the main event!
After two years of a Conservative led coalition government the track record is not that impressive, the deficit continues to grow (albeit at a slower pace), the national debt is still woefully out of control, borrowing is still at record levels and getting higher, public expenditure is higher now than in the last years of Brown’s disastrous administration, so much for the cuts eh? The slight saving grace is that unemployment has not yet broken past levels which might lead to the sort of civil unrest witnessed in Greece. The Eurozone crisis refuses to go away, banks still appear to need recapitalisng (again) and none of the major European players seem willing to take the bull by the horns and dismantle the single currency. All the while the pan European policy appears to be one of further austerity, less public spending, and increasing taxation, as near every nation in the EU other than Germany slumbers along on virtually zero growth.
Growth? Did I mention growth?
Ah yes, who has the secret elixir which will put more money into the hands of consumers or savers? It is they alone who can provide the demand and stimulus that economies need, and any person in South Tyneside who tells you that they couldn’t use a few extra quid a month is madly deluded. Banks rely on savers to swell deposits, greater deposits create more capital, more capital creates greater liquidity which normally leads to easier lending and investment, yet the current economic cycle has brought us interest rates which creep closer to zero and discourage any saving at all. Similarly current personal and indirect taxation levels do nothing at all to inspire consumer confidence and help us to prioritise our spending on essentials such as mortgages and rents, fuel, and keeping our older cars on the road for even longer. It is almost a pan European deflationary cycle. Our own government is caught up in the very same frame of mind as Labour’s outgoing Chancellor Alistair Darling who was equally determined to reduce the deficit whilst raising taxes and sending out hopeful signals on government expenditure. Neither Labour nor the current coalition appears to have had a “plan B” that might have included some major initiatives to promote economic growth and rekindle consumer demand.
So, sadly, whilst we are in the summer party of love mood we have to remind the politicians that “it’s the economy stupid”, and with that in mind I’ve asked some of our prominent politicians in South Tyneside, along with some business people and other bloggers for their ideas on what we need to do to get our local and national economy on the move. Of course your own ideas are very welcome too.
Have I missed out on a tax reduction?

Labour’s Iain Malcolm in odd statement
Cllr. Iain Malcolm, Labour’s Leader of South Tyneside District council is quoted today as saying:
“We have been able to reduce council tax year on year since I become leader.”
Has a year been missed out of my life? Have I been in a state of cryogenic suspended animation on another planet? Did they deliberately miss me out?
I have lived in South Shields all of my life, and as far as I can recall during the history of paying council tax on South Tyneside my bill has only ever gone up (or last year stayed the same thanks to the Coalition government), can someone please tell me which year during Iain Malcolm’s leadership that it was reduced?
Every time that South Tyneside Council had a “consultation exercise” on its website about council taxes I was offered a choice of four different levels of increases, never once was I offered the choice of a freeze or a reduction.
Has the “dear Leader” been terribly misquoted or has he become temporarily deluded into thinking he has become a tax cutting Tory after successfully squeezing the council’s budget?
Relaunch No.6 “Doing the right thing”
Keeping Ed Miliband may be the “right thing” for Cameron
Video courtesy of Guido Fawkes.
I don’t know how you feel, but I find it rather difficult to “connect” with this bloke, he may want to do the “right thing” but he never sounds right, nor looks right, and as Leader of the Opposition he just appears to be the “right thing” for providing target practice for David Cameron at the Dispatch Box.
However, talking of doing the right thing, at least Ed Miliband appears willing to join the Prime Minister in forcing the hand of Alex Salmond, the SNP’s First Minister in Scotland. This is an interesting position considering how many seats Labour might lose in Westminster should Scotland be broken away from the Union and attain independence, but fighting a move in a referendum on the matter is surely the right thing to do. Salmond the populist leader of his party has been invited by South Tyneside Council Leader Iain Malcolm to speak in the north-east at a meeting of the North East Economic Forum organised by Malcom’s Sovereign Strategy lobbying company. This is a good move as it will help to define relationships between Scotland and this region irrespective of the outcome of any referendum, whenever it may be held, our economic prosperity may suffer heavily should Scotland be in an independent position in regard to taxes, subsidies, and “sweeteners” to businesses and it is right that Salmond should come down here to clarify what he really wants for Scotland and to take back our views on how our joint prospects may pan out if Scotland is no longer part of the United Kingdom. Iain Malcolm said:
“I’m not in favour of Scotland becoming independent from the rest of the UK, we are stronger together, but that is a matter for the Scottish people.
“Whatever happens it is vital the North East has a stronger relationship with our partners across the border.
“That is why yes we do have to look at what might happen, say after 2014.”
The prospect of a nation on our doorstep offering better incentives to business, or smaller tax rates may well be something to fear, or will it? Perhaps such a scenario may lead to wholesale revision of business taxes in England introducing a necessary level of competition. Other worries may surface about areas such as VAT or sales taxes which could result in cross border shopping expeditions to Edinburgh or Dumfries furthering the decline of our north east shopping centres, a major worry for places such as South and North Shields, Wallsend, or Gateshead.
Like Malcolm, I do not want to see the eventual break up of the United Kingdom , and I do not believe it would lead to increased prosperity for the people of Scotland, I do not believe that they could cope economically without the levels of subsidies provided via Westminster. Like Cameron and Ed Miliband I think the “right thing” politically is to force Salmond’s hand and hold a definitive referendum at a time not of his choosing, with the legal framework clearly outlined so as there can be no doubt about the differences between a yes and a no vote.
Also, whilst we are on the subject of the “right thing” it is comforting to see that stumbling Ed Miliband at last recognises that cuts in public spending are necessary and right, and that deficit reduction needs to be ongoing, just a shame that he has spent the opening period of his leadership campaigning against such measures along with Ed Balls. The “right thing” to do now, surely, is to apologise for the mistakes made during the years that both of them spent in Gordon Brown’s government as the spending spree with other people’s money piled debt upon debt adding to the problems that we all face now.
So, Labour is starting to see the benefits of doing the “right thing” (and here’s another), now Miliband just needs to pull the rest of his party along with him. Unfortunately, and this will remain for some time, the presentation is abysmal, lacklustre, weak, and dull as dishwater, with major players in his own ranks bemoaning his performance – long may he remain as Labour’s leader!
South Tyneside’s five month election campaign!

Long lost cousins?
No – honestly, it isn’t until May next year.
Surely this must go down as the longest election campaign in South Tyneside’s history, however the Labour Party is already out of the blocks and up and running!
Former Mayor John Anglin has announced in a letter to residents of the Beacon and Bents ward in South Shields that he’ll be contesting the seat that he so recently vacated in order to make a lengthy overseas trip, and being a bit mischievous I noticed a distinct similarity between Mr. Anglin and former BBC children’s’ TV presenter Johnny Morris. The man from “Animal Magic” might easily have been a long lost cousin of John Anglin, don’t you think? More than likely Morris ignored the best advice ever given to showmen, “never work with children or monkeys animals”, and Anglin must surely be contemplating this advice too as he attempts to retake the seat for Labour. It is not yet known whether or not South Shields’ most controversial and outspoken councillor, Ahmed Khan, has decided that he wishes to defend the seat in May 2012.
Also out and about in the Fellgate and Hedworth ward was another new Labour candidate Alan Smith – no not this one - with council leader Iain Malcolm and Cllr. Bill Brady. They were there to say things to the effect that Labour does NOT forget about those wards that elect opposition councillors! Sounds quite funny really when the perception is quite the opposite, as I’m sure Cllr. Steve Harrison and his fellow independents will attest.
However there is a point to all of this, and that is that Labour is setting out an early marker that sitting Independent councillors are going to be targeted, and that they see opportunities of retaking seats which have “strayed” from Labour’s grasp in recent years. Make no bones about this, the current Labour leadership in South Tyneside sees a rosy future and believes that it can achieve overwhelming dominance in the council chamber as the Conservative and Lib-Dem brands appear “toxic” to the electorate. This new “Blue” Labour regime probably also sees some dividend coming from the tight budgetary controls imposed upon it by the coalition government, it is quite prepared to undertake the task of reducing council spending in exchange for the freeze in council taxes, they certainly don’t want to rock the boat by introducing proposals that call for increases in taxes when we are finding the economic climate “challenging”. The local Labour Party will be challenging the opposition parties to produce a well informed and costed alternative budget in the first quarter of next year, something which they have not been adept at doing with any great success in the past few years. It also offers Labour the opportunity of opening a “trap door” for the opposition if they attempt to produce a budget calling for a reduction in council taxes if it is accompanied by even larger spending cuts than those implemented by the ruling Labour group.
Now is the time for those Conservatives, Lib_Dems, Progressive, and non aligned independents in South Tyneside to come together with a united vision of how the borough can progress through 2012 without further affecting economic decline and without burdening the local electorate with additional taxation and service charges, in an effort to appear both sympathetic to the aims of the coalition in reducing the budget deficit and the debt mountain, and appealing to those who wish to see an effective and empathetic alternative to Labour whilst putting a firm squeeze on the Independent Alliance who have signally failed to prosper as an opposition with a real policy agenda or new ideas.
The long road to May 2012 starts here – today!
Talking of Shane Warne
South Shields Labour Party throw a few leg spinners too.
This from a few of the election leaflets being distributed on behalf of Labour in South Shields:
The Tory-led Coalition government have -
- Imposed £35m worth of cuts on South Tyneside Council with more to come
- Odd then that the total budget requirement for this year is only £11.7m less than last year and that the net budget requirement is £0.7m higher. Also odd that they don’t disclose that Alistair Darling planned to make cuts just about of the same order as the present government if Labour had won the general election, indeed Darling declared that cuts would have to be harder and deeper than in the Thatcher years.
- Increased VAT to 20% meaning we all have to pay higher prices for everyday things.
- Why don’t they mention that Labour’s last Chancellor wanted to introduce two similar rises?(As disclosed by Lord Mandelson)
Your Labour Council will -
- Improve our town centre – from Ocean Road to King Street and the Market Place.
- Please don’t laugh, I know you have heard this MANY times before and are still waiting to see it happen! Perhaps they meant replacing a few more paving blocks.
- Continue to bring down Council Tax by looking at better ways of delivering services – no increase in Council Tax for 2011!
- This one spun so much it missed the wicket keeper! Seriously can you believe that statement? For a start lets break it down into two pieces, firstly the claim that Labour will continue to bring down Council Tax, the word continue suggests an ongoing process, something which has happened before, is happening now and will happen in the future. Can anyone remember when Labour last did anything except INCREASE Council Tax in South Tyneside? No……neither can I.
- Secondly the use of the exclamation mark after – no increase in Council Tax for 2011 – suggests that Labour was in some way responsible for this first ever freeze, when we all know they could never be responsible for anything except tax rises. This is the most outrageous use of “spin” I’ve seen for years in this borough. The Council Tax freeze has been imposed on our council by the Conservative led coalition government, and if our council manages our money well we may find that it is frozen again next year as the grant system rewards prudence.
Finally there is a statement that Labour is (amongst other things)
- Committed to driving down Council Tax.
- Well, it beggars belief really, can you recall all of those consultation exercises and public polls that offered you a choice of four levels of council tax rises, but never once offered a freeze or a cut? Can you really believe they are committed to driving down Council Tax in South Tyneside – I cannot!
Don’t be taken in by this spin and please remember on May 5th. that in South Tyneside Council Taxes under Labour have done nothing else except rise inexorably year after year after year. It was a Conservative led government that brought you this year’s tax freeze!
Miliband has let down the centre ground
Three cheers for Luke Bozier for introducing some sensible debate to the Labour Party
I’m not normally in the habit of sending readers along to Labour Lost List, but Luke Bozier’s contribution today is lucid, cogent, sensible, and above all necessary. It has sparked a healthy debate amongst the left in a way that neither of the Miliband brothers have managed recently, and I think it represents the sensible opinion of millions of silent voters across the UK.
I spent much of the weekend contemplating whether or not the Labour Party of today is the party I joined four years ago. The answer in most part is no. I felt ashamed listening to Ed Miliband’s speech at the big TUC march on Saturday, when he effectively glorified the ‘stop all cuts’ movement and compared it to such monumental moments of the 20th century as the suffragettes movement which gave women the vote, the civil rights movement in America and the anti-apartheid movement in South Africa.
As Labour leader, Ed has a legitimate platform from which to address any issue he pleases, but elevating a movement like the TUC march to the level of the civil rights movement I find tone deaf and insulting to that and the other causes he mentioned.
We must ask ourselves, as a party, what kind of Britain we want to create, and whether or not we too are capable of being the party of the vested interest. From my perspective, and that of many others, Labour currently stands for one thing: halting the cuts to the public sector. We have in effect become the party of the public sector. As important as the public sector is, it only represents a portion of society, and is not a panacea for all of society’s ills as many in the Labour Party mistakenly believe. Cutting public spending will have an effect on some peoples’ lives but we have to take hold of our senses – nothing this government can do will take us anywhere near the levels of suffering and deprivation Britain witnessed in the 1980s.
If Labour had won under Gordon Brown……..
…….their “cuts” would begin to bite in two days time.
It is so easy to forget that during the campaign for the last general election you could hardly pass a cigarette paper between the economic and fiscal policies of the two main parties, the Conservatives were promising around £16bn worth of savings to reduce the structural deficit built by Gordon Brown’s regime, and Labour were proposing £14bn worth of cuts in their next planned budget which would have been effective from April 1st. next year. That £2bn difference is minuscule when viewed against the £1 trillion (and growing) debt that they left us.
Yet now that Gordon Brown has been consigned to the history books and Alistair Darling forgotten about, can the Labour Party in Opposition be responsible enough to stand by their manifesto pledges and talk freely about the areas which would have suffered had they swung their axe?
It appears not, in recent days both Ed Balls, the Shadow Chancellor and Harriet Harman, the Deputy Leader have both evaded questions about Labour’s cuts whilst the party’s leader embarks upon a campaign of supporting street demonstrations and direct action, Balls in his interview with The Daily Mail on Monday made the slightly ridiculous argument that the economy had started to show signs of strong growth at the end of Labour’s stint (0.2% if I recall correctly) and that coalition policies had stunted that growth re-stoked inflation and set unemployment on an upward path. The ridiculous part of the argument is that the fiscal measures announced in Gorge Osborne’s first budget will not come into effect until April 1st. this year, and Balls knows it full well, it is the same date that Labour’s budget would have been effective from if they had won the election. In his interview Balls gave no clues at all on where Labour would have wielded the axe as they set about “halving the deficit in four years”. Yet he and his leader were prepared to share a platform in London decrying the government for doing what Labour would necessarily have had to do.
Harriet Harman repeated the same lame argument on the BBC’s Daily Politics Show yesterday, and once more utterly failed to convince in her answers to the questions about where Labour’s cuts would hurt.
Interviewer: You talk about the cuts being wrong but you do not talk about the alternative. You also do not mention that you would also be making cuts.”
HARRIET HARMAN: “We do. We say that we would halve the deficit over four years. Now what happened is the economy was hit by a global financial crisis. We had to allow the deficit to rise to protect the economy.”
Interviewer: “I know it’s tempting to get into the history lesson.”
HARRIET HARMAN: “I’m just trying to explain what we would actually do instead. There is an alternative and that’s what we’re setting forward.”
Interviewer: “So when it comes to cuts where would you cut and what would you cut?”
HARRIET HARMAN: “Well we think that Government is making matters worse because they’re slowing down economic growth.”
Interviewer: “You’re not answering the question and that is the problem.”
HARRIET HARMAN: “Well I am. Because basically the cuts are making. What the Government is doing is making the situation worse. They are making unemployment rise. We are seeing growth falter and that makes it harder to cut the deficit. So my point is they are making the deficit worse.”
Interviewer: “Don’t you see the problem though with this approach because you at the last election said that you would have to make cuts. Now it is impossible…”
HARRIET HARMAN: “Halving the deficit over four years.”
Interviewer: “To get you to say where you would cut. I’ve had Ed Miliband, Ed Balls sitting in the same seat. He wouldn’t say it.”
HARRIET HARMAN: “No well we’ve said over four years. We would.”
Interviewer: “Where? Where?”
HARRIET HARMAN: “We’ve said that we would consolidate backroom functions. That we would hold back on, erm, investment in capital that we’ve been doing so much over the last thirteen years of. So we’ve said it would.”
Interviewer: “Some of the people on that march. Some of those people listening to Ed Miliband would have lost their jobs under a Labour Government. Yes or no?”
HARRIET HARMAN: “Well I think that basically we would see, er yes fewer people employed in the public sector. We wouldn’t see the increase in public sector employment that we’d presided over. But I think to assert.”
Interviewer: “But that’s interesting so absolutely categorically some of those people who were there cheering for Ed Miliband would have lost their jobs because you would have cut their jobs had you been in Government?”
HARRIET HARMAN: “I think people were actually saying that the cuts are too far and too fast and the idea that the private sector.”
Interviewer: “The answer to that question is yes isn’t it. They answer is yes. Some of the people there would have lost their jobs because you’d have had to have made cuts in Government.”
These are very weak arguments to be barking at people looking to support the Labour Party in opposition especially when viewed against the published spending plans that Balls, Miliband, and Harman had put their metaphoric signatures to when in government only twelve months ago.
Official Treasury figures from the Budget show that Labour would cut just £2 billion less than the Government in 2011-12:
‘Under the plans that this Government inherited, £14 billion of spending cuts were planned in 2011-12, compared with 2010-11. This Government’s spending cuts amount to £16 billion over the same period’ (HM Treasury, Budget 2011, p. 10)
And so we are left with the rather distasteful images of a Labour leadership lacking in honour and candour as they continue to hide the truth about their own planned cuts, whilst standing shoulder to shoulder with thousands who were deceived into believing that things would have been so much different, the anarchists and the perpetrators of violence may well NOT be part of the trades union movement but we can almost guarantee that at every rally and protest planned over the next couple of years they’ll be there. Conveniently, Labour’s spending cuts will not!
Video courtesy of Guido Fawkes.





























